Our development finance solutions follow the full development cycle. We source funding through the cycle with land loans, development/conversion finance, developer exit facilities and where required take out into an investment facility.
We take time getting to know our lenders and staying up to date with their criteria. Our panel starts with banks ranging through to specialist and private lenders with over 45 lenders. We can source funding up to 75% of the gross development value, 100% of costs and typically up to 90% loan to cost with each proposal having its own unique requirements.
As a team we have provided finance from £500,000 through to a £100,000,000 so you’re in experienced hands. We understand what our lenders look at and find appealing within a proposal allowing speed and efficiency throughout.
Before presenting your proposal, we look at your costs and run the numbers through our own development finance model. Our development finance model allows us to provide our clients with an immediate outline before approaching lenders allowing us to consider who are the likely banks/companies to offer finance.
What does our model look at?
- Calculated Interest rolled or retained
- Lending Fees in and out
- Monthly Drawdowns
- Build Cost per square foot
- Gross Development Value per square foot
- Loan to Cost
- Loan to Gross Development Value
- The Residual Land/Site Value
- Gross Profit
- Sales Proceed Release on plot sales (for larger schemes)
This in turn saves our clients time ensuring we approach the right lenders day one.
Each application is supported by a detailed loan summary to speed up the assessment and credit submission for our lenders together with a full development finance pack to get the finance to formal loan offer in the most time efficient method. The loan summary is written by experienced ex lenders and further supported by former underwriters to take your application through its legal due diligence to ensure the finance is completed on time.
Typical Lending Requirements:
- Senior Debt: Finance up to 60% loan to cost with rates starting from 4% over base or libor.
- Stretch Senior: Finance up to 90% loan to cost and to 65% loan to gross development value with rates starting from 5% plus base or libor.
- Mezzanine: Up to 95% of total costs and up to 75% of the loan to gross development value.
- Land Loans: These are typically available up to 65% of the residual land value.
- Joint Ventures and Equity: (please see our JV section).
- Single Units and Small Sites.
- Developer Exit Solutions: Up to 76.7% loan to value on refinance. Release equity for further projects together with pre agreed sales proceed release.
- Multi Phase Loans: Typically with pre agreed proceed release.